Resident property expert – Mathew Wood of Hola Properties, based in Lanjarón – divulges the latest trends in the local property market…
THE property market in Granada and the Costa Tropical has seen some notable changes this month. From infrastructure investments to new developments and housing trends. there’s plenty to monitor. If you’re a local homeowner, these shifts could impact your property’s value and the wider market.
Major investment in Granada’s infrastructure
One of the biggest announcements this month is the €100 million investment into transport and infrastructure across the province. A significant portion will be spent on expanding the Granada Metro system, making it easier to navigate the city. Improved accessibility is already making Granada a more attractive destination for both tourists and long-term residents. The last five years have seen a surge in weekend tourism, and these new transport links are expected to fuel that trend.
Coastal growth: Motril’s new hotels and housing expansion
Down on the coast, Motril is set for a huge transformation with the construction of four new hotels. These developments are focused on sustainable tourism, ensuring that the growth in visitor numbers benefits the local economy without overwhelming the area.
Alongside the tourism push, there will be a large housing expansion, including over 1,000 new homes. Of these, around 400 properties will be allocated as affordable housing – a much-needed boost for the local community. With demand rising, especially among international buyers, this move will help maintain a balanced market and prevent price surges that make it difficult for locals to buy.
A video on this topic can be viewed here.
Property prices on the rise
Those following the market will notice the steady price increases. In Motril and Salobreña, property values have risen by 2% in the last month alone and 7-8% year-on-year. This isn’t a property bubble—it’s a steady, healthy trend. More people are recognising the Costa Tropical as a prime location, thanks to its natural beauty, improved infrastructure, and more sustainable development.
Tourism license changes – major fines for non-compliance
If you own a holiday rental, you need to be aware of the new tourist license regulations. The government has significantly increased inspections and enforcement, with fines of up to €600,000 for non-compliant properties.
Key changes include:
- Strict enforcement of advertising regulations – If your property doesn’t display a valid license number, you could be fined.
- More difficult application process – New rules mean licenses won’t automatically transfer when a property is sold. Buyers must now reapply under the updated requirements.
- Community approval in apartment blocks – If your home is in a shared urbanization, your neighbours now have a say in whether a new tourist license is granted.
If you’re unsure whether your rental property complies, it’s worth getting expert advice, rather than risking a hefty fine.
Who’s Buying? More interest from the US
One interesting trend is the increasing number of buyers from the United States, particularly from California. Many are drawn to Granada and the Costa Tropical due to its climate, lifestyle, and lower cost of living compared to major US cities. The Golden Visa changes have also accelerated purchases, with many buyers securing residency before policy updates are applied.
What does this mean for homeowners?
For those thinking about selling, this could be the perfect time. With demand rising, prices increasing, and new developments drawing attention to the region, properly marketed properties are selling well.
